02 May 2014

Fastjet restructures loss-making Fly540 operations in Ghana, Angola.

 
African budget carrier Fastjet has confirmed it has temporarily suspended operations in Angola as part of a major restructuring program aimed at turning around its loss-making Fly540 businesses there and in Ghana.
Currently, the Ghana and Angola businesses operate on a legacy airline model.
Fastjet believes that—although both countries present significant long-term opportunities for its low-cost model—the optimum short-term potential is exploiting growth opportunities in East and Southern Africa.
As part of the restructuring, two group-owned ATR aircraft, previously operating in Ghana and Angola, have been taken out of service and are in the process of being sold. A leased aircraft continues to operate in Ghana, and the Angolan operation will resume when two further leased aircraft return to service upon completion of required maintenance. Fastjet said it would release further details on the restructuring of both Fly540 operations in due course.

Fastjet interim chairman and CEO Ed Winter said: “Management has been carefully considering how best to restructure the Fly540 business, which we inherited, and this is a highly significant and very positive development in that process. We are currently focused on expanding the low-cost Fastjet network in East and Southern Africa by establishing bases in Zambia, Kenya and South Africa—and these plans are progressing well. However, our overall vision is to create a pan-African low-cost network and, as such, launching the low-cost Fastjet model in both Angola and Ghana remains firmly part of the company’s long-term plans."

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